5 U.S.C. app. 4 §§ 501-505 set forth the limitations on outside income and activities of certain noncareer employees, referred to as "covered noncareer employees." The limitations in these statutes apply to any noncareer employee who occupies "a position classified above GS-15 of the General Schedule or, in the case of positions not under the General Schedule, for which the rate of basic pay is equal to or greater than 120 percent of the minimum rate of basic pay payable for GS-15 of the General Schedule."

Outside Earned Income Limitation

Employees in this category may not have, in any calendar year, outside earned income attributable to that calendar year that exceeds "15 percent of the annual rate basic pay for Level II of the Executive Schedule under section 5313, of Title 5, United States Code, as of January 1 of such calendar year."

Prohibition on Compensation

There is a prohibition on receipt of any compensation for certain activities. Covered noncareer employees may not:

receive compensation for affiliating with or being employed by an entity such as a partnership or corporation that provides professional services involving a fiduciary relationship;

receive outside compensation for practicing a profession that involves a fiduciary relationship; or

serve for compensation as an officer or a member of the board of an association, corporation, or other entity.

Other Restrictions

In addition to the restrictions on outside compensation, a covered noncareer employee:

may not permit his or her name to be used by an entity such as a partnership or corporation that provides professional services involving a fiduciary relationship; and

must receive advance authorization to engage in teaching for compensation.